Bitcoin could be pushed to $44,000 before the approval of the spot Bitcoin ETF as analysts foresee no upcoming interest rate increases.
In an unexpected turn of events, Bitcoin, the leading cryptocurrency globally, has undergone a notable trend reversal, reaching $38,000 on Wednesday. This marks the first instance in the past 18 months, dating back to May 2022, that Bitcoin has attained such high price levels.
SEC Postpones the Approval of Bitcoin ETF
Despite the US SEC delaying its decision on approving the spot Bitcoin ETF, the potential introduction of ETFs aims to streamline Bitcoin access for both institutional and individual retail investors, potentially resulting in a substantial increase in funds flowing into this asset class.
Over the last 24 hours, Bitcoin has recorded a roughly 6% gain, reaching $37,550 at the time of this report. This continues its year-to-date recovery, showcasing a 129% increase from its decline in 2022. Simultaneously, other cryptocurrencies, such as the second-ranked Ether, have also displayed positive movement.
The surge in Bitcoin’s price prompts the question: What is driving this rally? Analysts posit that the imminent conclusion of rate hike cycles by the Federal Reserve could serve as a significant catalyst for boosting cryptocurrency prices.
Investors are pondering whether the recent surge in Bitcoin has already taken into account the expected impacts of spot ETFs. While the approval might be factored into the current price, market analysts stress the essential question of how much inflow the ETFs could potentially generate.
Bitcoin’s Next Move: Analyzing the Direction of BTC Prices
BTC has exhibited significant volatility in the aftermath of a sell-off at $35,000 earlier this week. Currently surpassing key support levels at $36,000, analysts anticipate a potential rally to $43,000 and beyond in the weeks ahead.
Moreover, on-chain data indicates robust strength in Bitcoin network activity. According to Santiment, Bitcoin’s NVT (Network Value to Transaction) ratio has significantly improved, positioning it as a prominent alpha signal for traders in the crypto market. This metric gauges the well-being of the circulating unique BTC quantity in relation to current market capitalization levels.
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